Abstract
Using trade and labor-force data of the western provinces from 1994, this study empirically proved the existence of a long-running equilibrium between foreign trade and labor size in western China. By constructing a vector autoregressive model, the results show that the “opening toward the west” policy increased western China’s import and export, both of which attracted an inflow of labor force. After analyzing the numerical effect, a Shift-Share Analysis (SSA) and an analysis of the deviation degree of industrial structure are conducted, to measure the possible structural changes in the labor force. We find that manufacturing in the western provinces is comparatively more advantageous than manufacturing at the national level, which theoretically calls for a huge labor demand. Agriculture presents a contrasting result. This result is consistent with the results of the deviation degree analysis. In conclusion, the Belt and Road Initiative (BRI) has changed the trade patterns, and it has enhanced the comparative advantages of western China and it is expected to bring about changes in both the number and the structure of the local labor force, and it provides new impetus for the region’s development.
Highlights
The Belt and Road Initiative (BRI) proposed by China is a large socioeconomic and geographic project across countries and continents, which aims to explore the possibility of connecting China to different parts of the world, in order to promote trade and communication, and exchanges of experiences of development [1]
This paper selected data from the 1990s to the present, finding that there is an increasing labor force in western China, the region continues to have a low proportion of skilled workers
Since the implementation of BRI, the support for trade under this initiative is expected to bring about changes in this area
Summary
The Belt and Road Initiative (BRI) proposed by China is a large socioeconomic and geographic project across countries and continents, which aims to explore the possibility of connecting China to different parts of the world, in order to promote trade and communication, and exchanges of experiences of development [1]. As a major commitment of the initiative, investment and trade are predicted to attract ample attention [3] , which may create the potential for regional cooperation and development, especially in parts that were relatively forgotten in the previous round of economic globalization, such as central Asia. The BRI is a way for China to sustain its economic growth, by exploring new forms of international economic cooperation with new partners, bringing with it new opportunities for relatively less developed regions; for instance, western China [4]. There are few studies that have examined the (potential) impacts of the BRI on regional economic development
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
